If current year’s amortization is overstated, will this affect next year’s net income? (Answer is no?) If current year’s ending inventory is overstated, will this affect next year’s retained earnings? (Answer is no?) I dont understand the answers
Can you post the exact questions please?
Depends on whether it will be discovered or not. If it is discovered next year that there was an error then figures will be restated and therefore no effect. This is just my guess! What would others say?